Category Archives: Inflation

The Downside Of Keeping Interest Rates So Low For So Long

From NPR News

The last time the Federal Reserve raised interest rates, it was summer of 2006 — back when Shakira was topping the music charts, Barry Bonds was breaking home run records and the housing bubble was still inflating.

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Do You Use Money? If So, You’ll Want To Read This By Thursday

From NPR News

The Fed is considering raising interest rates — and will announce that decision on Thursday. If the central bank were to act, it could have an impact on your financial life, forcing you to eventually pay more for car loans, credit cards, home equity loans and more. Or if you’re a retiree with savings, a rate hike could boost your income.

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Retirement fear: Inflation

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When you were a kid, did you fear monsters hiding in your closet or under your bed? You’re no kid anymore and new fears haunt you — such as running out of money in retirement after a lifetime of watching prices go up. You can still plan now to enjoy enough to spend as well as how to spend it.

People do feel slightly better about their golden years’ money these days, according to the latest Employee Benefit Research Institute survey on retirement confidence. More than one out of five workers are now very confident – though almost one in every four express little faith that they’ve saved enough, with future medical expenses being a major concern.

Nagging worry about what’s missing in our retirement plans can be very justified. Additional good news is that you can manage such fears.

You need to consider many risks in your planning process, especially the often-ignored creep of inflation. While a bad price spiral is hardly inevitable, a more muted pace of inflation remains a good bet. Best estimates put the coming years’ overall price jumps at about 2% annually — much as anyone can predict such a figure.

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